Betway will continue in Ontario amid US sportsbook shutdown

Super Group brand's Canadian operations will not be affected

Super Group‘s sportsbook brand Betway will continue to operate in Ontario despite shutting down in all of its nine U.S. markets.

The European gaming holding company announced Wednesday that Betway sportsbook operations will cease in ArizonaColoradoIndianaIowaNew JerseyLouisianaOhioPennsylvania and Virginia. It will begin its exit strategy imminently.

However, Betway told Canadian Gaming Business that its operations in Ontario will be in no way affected by the U.S. closures.

Betway launched in Ontario in August 2022 but already had a sizeable presence in the province before the regulated market opened that April.

Data from Wells Fargo released in the early weeks of Ontario’s regulated market showed that Betway had the second-highest number of daily active users in Ontario after only theScore. Around the same time, separate Morgan Stanley and Barclays reports concluded that Betway ranked third in the province in terms of app downloads in the first 10 days of the market. Morgan Stanley also estimated that Betway accounted for the highest percentage of iGaming and sports betting smartphone app downloads in Ontario on a monthly basis for the whole of 2021.

However, it has not experienced great success in the U.S.

The decision to shut down its U.S. sportsbook operations was made after an “extensive internal review” that determined it would be a long time before the sportsbook could make money consistently in that market.

“As a global business, we constantly evaluate the optimal use of our resources across all markets in which we operate,” said CEO Neal Menashe. “We have recently concluded an extensive review of our U.S. operations and, at present, we do not see a long-term path to profitability for the sportsbook product.”

The review was conducted after Super Group’s U.S. businesses reported heavy losses of $24 million in Q1 2024 for its U.S. business. Revenue dropped 13% year-over-year across North America in Q1 2024 and in fiscal year 2023, Betway’s parent company posted $61 million in company-wide losses.

Super Group said it expects to incur costs and charges in connection with the closure of its U.S. sportsbook operation. It will provide an update during its Q2 earnings call next month.

Super Group’s iGaming wheel will keep Spinning

Super Group will, however, maintain its iGaming presence in the U.S. In Q1 2024, four-fifths of Super Group’s $404 million in revenue came via iGaming.

“The vast majority of Super Group’s revenue is generated in iGaming and, in line with that strategy, we will continue to offer our leading casino product in New Jersey and Pennsylvania,” added Menashe. “We are open to expanding our U.S. footprint if the right investment or strategic opportunities arise.”

It plans to operate two iGaming brands from its Spin portfolio, which includes Jackpot City, in both New Jersey and Pennsylvania.

In Ontario, it received licensing for four online casino brands back in 2022: Spin Casino, Jackpot City, Royal Vegas and Ruby Fortune, which are all owned by Super Group subsidiary Cadtree Ltd.

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